Accounting and Reporting Long-Term Debt

Learning Objectives

• To discuss the importance of proper debt classification and disclosure.
• To explain how various common debt terms impact the classification of debt.
• To inspect proper responses to debt covenant violations.
• To analyze and apply illustrative examples to appropriate disclosure of debt terms and circumstances.

Course Description

Explore the intricate world of accounting for debt with our comprehensive online webinar. Delve into the complexities of long-term debt through detailed case studies that illuminate critical issues affecting classification, disclosure, and debt covenant compliance. Led by Jennifer Louis, this course aims to fortify your understanding of debt's classification importance, the impact of various debt terms, and the necessary responses to debt covenant violations.

Throughout this CPE Accounting course, we'll navigate through an array of debt structures, from lines of credit to short-term and secured debts. Learn how lines of credit function as pre-negotiated borrowing arrangements and grasp the nuances of short-term debts, including trade notes payable and nontrade notes payable. Unpack the intricacies of secured debts like mortgages and secured loans, understanding their impact on financial statements and reporting.

Special debt considerations such as debt issuance costs, imputing interest on noninterest-bearing notes, and identifying pledged assets will be unveiled, offering a deeper comprehension of their accounting treatment. Dive into troubled debt restructuring scenarios, distinguishing between troubled debt restructuring and non-troubled debt modifications, while deciphering the accounting nuances associated with each.

The webinar concludes with a comprehensive breakdown of long-term debt details from annual interest rates to principal payments. Explore the implications of current and noncurrent maturities of long-term debt, unraveling the intricacies of financial obligations and their impact on financial statements. Elevate your expertise and broaden your accounting horizons with this illuminating journey through the maze of accounting for debt.

Major Topics Covered:

• The importance of proper debt classification and disclosure
• How various common debt terms impact the classification of debt
• Proper responses to debt covenant violations
• Apply illustrative examples to appropriate disclosure of debt terms and circumstances

Overview

• Special debt considerations

  5 mins
• Classification considerations - subjective accelerations clauses

  16 mins
• Example: Debt waiver request

  31 mins
• What if not a true refinancing?

  46 mins
• ASC 405 - Liability extinguishment

  57 mins
• Special considerations in concession example

  74 mins
• Troubled debt restructurings

  93 mins